Cryptocurrencies

Bitcoin volatility spikes to six-week high amid slump to $7,750

Bitcoin has endured its most volatile week since late November with price swinging wildly between $7,400 and $8,400.

It is currently trading at $7,750 following a major rejection and subsequent sell-off from the $8,400 level of resistance.

BTC has however bounced by 2% from the low of $7,650.

Several analysts are still predicting that Bitcoin will surge through the $8,400 level of resistance in the coming weeks, with $8,850 emerging as a potential target.

However, price action to the upside will only come to fruition if Bitcoin can form a level of support by closing numerous daily candles above the $7,900 region, which held during September and on several occasions in the 2018 bear market.

The 200 exponential moving average (EMA) on the daily chart also serves as a tough hurdle to surpass for Bitcoin, with it clearly acting as a point of resistance throughout Tuesday’s rally to $8,400.

It is currently residing at $8,150 and has been a historic point of support and resistance throughout Bitcoin’s 11-year history.

Should Bitcoin reach this level again, another rejection in price could also be on the cards, which would almost certainly cause a dive in price back towards $7,400 and $6,800. This is reiterated by the rapidly falling relative strength index (RSI).

The daily RSI is now below 60 after topping out at 68, and while there has been a slight uptick in the past 24 hours, the immediate trend is almost certainly down.

For more news, guides, and cryptocurrency analysis, click here.

Oliver Knight

Londoner ‘Ollie’ graduated from Birmingham City University with a journalism degree in 2016. He combines his writing with his love of crypto and blockchain here at Coin Rivet, saying “It disrupts well-established institutions (banks) while giving an avenue to the less fortunate to achieve financial freedom.” Like all true Londoners, his pet hate is… “People standing on the left-hand side of the escalators on the Tube!”.

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